Department of Agriculture and
Markets

Disclaimer

This Google™ translation feature is provided for informational purposes only.

The New York State Office of the State Comptroller's website is provided in English. However, the "Google Translate" option may help you to read it in other languages.

Google Translate™ cannot translate all types of documents, and it may not give you an exact translation all the time. If you rely on information obtained from Google Translate™, you do so at your own risk.

The Office of the State Comptroller does not warrant, promise, assure or guarantee the accuracy of the translations provided. The State of New York, its officers, employees, and/or agents are not liable to you, or to third parties, for damages or losses of any kind arising out of, or in connection with, the use or performance of such information. These include, but are not limited to:

damages or losses caused by reliance upon the accuracy of any such information

damages incurred from the viewing, distributing, or copying of such materials

Because Google Translate™ is intellectual property owned by Google Inc., you must use Google Translate™ in accord with the Google license agreement, which includes potential liability for misuse:
Google Terms of Service.

Department of Agriculture and
Markets
Annual Assessment of Market
Orders for 2012, 2013, and 2014

Purpose
The purpose of this performance audit was to determine whether the Department of Agriculture
and Markets (Department) has adequate procedures in place to accurately report its assessable
expenses related to its administration of Article 25 of the Agriculture and Markets Law. We
performed our audit pursuant to legislative mandates included in Section 294(8) of this Law, which
direct that the Comptroller audit the expenditures for each market order. Our audit covered the
period July 1, 2011 through June 30, 2014 for the Apple and Sour Cherry Market Orders and the
period April 1, 2011 through March 31, 2014 for the Apple, Cabbage, and Onion Research and
Development Programs.

Background
Within the Department, the Market Order Administration unit is responsible for administration
of all farm product market orders, except those involving dairy products. Each specific market
order detailed in Department regulations is established to assist the industry in achieving a
variety of objectives, including product promotion, advertising, and research. These market
orders include: the Apple Market Order, the Apple Research and Development Program, the Sour
Cherry Market Order, the Onion Research and Development Program, and the Cabbage Research
and Development Program. Article 25 of the Agriculture and Markets Law authorizes the market
orders and allows for the collection of funds by assessing growers to cover expenses.

Key Findings

The Department has adequate procedures in place to ensure that it accurately reports its
assessable expenses in all material aspects.

The Department needs to improve its oversight of its Market Order Program, particularly its
Apple Market Order, which is administered pursuant to a contract with the New York Apple
Association, Inc. (NYAA).

Key Recommendations

Follow up on the questionable expenses identified in our report and seek repayment for any
inappropriate or ineligible expenses.

Strengthen policies and enforce provisions of the Apple Market Order contract by:

Developing written guidelines for expenses deemed necessary for NYAA’s performance
under its contract, including travel reimbursement in excess of State rates and business
entertainment expenses; and

State Government Accountability Contact Information:Audit Director: John BuycePhone: (518) 474-3271; Email:StateGovernmentAccountability@osc.state.ny.usAddress: Office of the State Comptroller; Division of State Government Accountability; 110 State Street, 11th Floor; Albany, NY 12236